Question: Grayson\'s Lumber Mill sold two machines in 2016. The following inform

Question

Question: Grayson's Lumber Mill sold two machines in 2016. The following information pertains to the two machines: Purchase Useful Salvage Depreciation Machine Cost Date Life Value ethodDateSold Pice Sales #1 $66,000 7/1/11 5yrs. $6,000 straight-line 112 $50,000 7/1/14 5 yrs. $5,000 Double-declining 12/31/16 $30,000 7/1/16 $16,000 balance Instructions: Compute the depreciation and Accumulated Depreciation on date of disposal. each machine to the Machine #1 Depreciable Depreciation Annual Cost Year X Rate Accumulated =|Depreciation Depreciation 2011 (1/2 year) 2012 2013 2014 2015 46. 47. 48. Machine #2 Depreciable DDB Rate Accumulated Annual Depreciation Depreciation Year Cost 49. 2014(1/2 year) 2015 50.

Explanation / Answer

Machine 1:

Machine 2:

Double declining percent = 100% / 5 years

= 20%

Double declining rate = 2 * 20%

= 40%.

Years Depreciable cost Annual depreciation Accummulated depreciation 2011 $60000 $6000 $6000 2012 $60000 $12000 $18000 2013 $60000 $12000 $30000 2014 $60000 $12000 $42000 2015 $60000 $6000 $48000

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